This one was not so good at first — but quickly turned into a whirlwind down the White House personal-attack toilet.
Zillionaire Amazon founder and Washington Post owner Jeff Bezos on Saturday fired a sharp hit at Joe Biden, the most ignorant president perhaps ever, and basically accused Biden of not knowing the basics, lying, or both in a pathetic tweet shared on Biden's Twitter account, in which the gas stations were urged to cut their prices:
“My message to companies managing petrol stations and setting prices at the pump, the time is clear. it's an era of conflict and danger to the world.”
“Lower the price you charge at the pump, so that it reflects the price you are paying on the merchandise. Do it now.”
Where should one start? But don't worry — we'll get there.
Bezos, who is believed to know at the very least the same amount about market dynamics as Biden, replied:
“Ouch. Inflation is too significant to officials in the White House to keep making statements similar to this. It's either straight forward confusion or a profound misunderstanding of fundamental market dynamics.”
“Ouch,” is right.
Just like that, the embattled White House Press Secretary Karine Jean-Pierre unleashed a full-on temper tantrum on Bezos and lashed out at the highly prosperous businessman, entrepreneur and politician in a brief tweet storm.
“The price of oil has dropped by around $15 in the last month, however prices at the pumps have not decreased. This isn't “basic market dynamics.” The market is not serving the American consumer.”
Please. The price of oil dropped just 7.8 percent to the day, which was the first drop in the monthly price range in a calendar year. What's the reason? It's because of Bidenflation along with the Biden energy crisis. You're already embarrassing yourself, KJP.
Evidently unable to contain herself In a fit of anger, Jean-Pierre launched an self-deprecating personal attack on one of the top business leaders in the history of business and the current second-richest person on earth.
However, it's probably not unexpected that you believe that oil and gas companies making use of market power to earn huge profits, at the expense of the American people, is how our economy should function.
Translation: “Na-na na-na boo-boo!”
Absolute and total absurdity.
As I noted in May, Federal Reserve economists have destroyed Biden's false charge of oil-company “profiteering,” which he is using as yet another pathetic justification for gasoline price increases. While we're at it Let's take a look at Biden's naive claim of “bringing the price down at the pump.”
Based on the breakdown below, Biden's tweet may be more than I first thought.
The margin on the cost of a gallon of gasoline is approximately fifteen cents for each gallon (gross profit before expenses). When you factor in costs, which comprise utilities, rent, freight, labor, and credit card charges, retailers are left with around 2-cents per gallon profits.
Stores can sell an average of about 4,000 gallons a day, therefore, retailers generally earn about $100 per day from selling gas (net profits that can be used to pay for other expenses that are not previously mentioned like maintenance or insurance). The margins can be wildly different over the course of the year.
If wholesale prices rise and retailers are forced to delay price increases because they know that customers who are price sensitive will find a different place to purchase their fuel and other things in the store. This can lead to a situation where retail stores are losing money for every gallon of fuel they sell.
If wholesale prices drop retailers attempt to extend margins in order to compensate for the lost margins that were incurred when prices increased.
What a shock that famous experts in energy and market dynamics such as Joe Biden and Karine Jean-Pierre are completely ignorant of the above facts. It's like they're in denial since they're not aware of what they're doing.
In addition, when I shared the breakdown above via social networks, one of my followers who owns a gas station commented on the post: “Thanks, Mike! We are gas stations and the markup you suggested is right on!” Empirical data? No. I have a trusted acquaintance who has been with me over the years? Yes.
In the case of Karine Jean-Pierre, one could only imagine the daily terrors of her defense of Joe Biden and things that are said by him and his plethora of failed policies, and what they've caused for America, KJP makes former White House press secretary Jen Psaki look like Dana Perino during the Bush administration.